With all that’s going on in the market, the energy sector is another area of the market were money is being sucked right out of. Oil prices failed a support level we had on watch of 72.5 and now oil is trading at around $68 per barrel.
Since our support level was broken, we took a trade in this sector to take advantage of the lower prices. In our crosshairs, SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which will grant us blanket exposure to a wide variety of energy companies, which should all follow oil’s lead should lower prices be imminent.
Take a look at my video below to find out my levels on this ETF and for a possible entry point into some bearish plays.